Weekly Commentary: 3rd August 2014

Previous weekly commentary: Commentary on 27th July 2014

Hello Traders,

The USD index closed the week around $81.40. More importantly, the high of the week was around $81.70 before it closed lower. Remember the $81.50 resistance that I was looking for? While there is no clear sign that the price has broken that level, it’s a good sign that the level is valid. The coming week will be interesting to see if price will move higher or not.

The following is my watch list for the week:

03 Aug - GBPUSD Daily Forex Chart

(Click on image for larger view)

  • GBPUSD – As mentioned on the 20th July (see article), price came back to retest the 1.7 price level. That was a nice final test of the extreme before it failed to move higher. While price did not move any higher, it was a good test to see who was in control. In fact, the sellers were so strong that it moved about 200 pips since then. That is enough to show who is dominating the market. For me, I also know who I’m following from here onwards.

03 Aug - AUDUSD Daily Forex Chart

(Click on image for larger view)

  • AUDUSD – Isn’t it weird how things work in the financial market (as well as in life)? As I was only commenting about the pair last weekend (see article), price started to move again at the start of the week – and that’s the thing, we never really know when things happen.  Looking at the chart above, price is now moving towards the bottom of my range (purple box). For a committed move lower, I need it to break below my box. For now, a break below the neckline is a good start.

03 Aug - EURNZD Daily Forex Chart

(Click on image for larger view)

  • EURNZD – While I much prefer trading the majors and minors, I could not help but like the chart above. Looking are the cross pair above, I found a fairly interesting set up. Price is in a downward market and there’s a few simple support & resistance to do the trick. On top of that, if you were to look at price action carefully, Friday closed with a nice high test pin bar. Remember to keep it simple and so will I for this pair.

 

Thank you for reading and happy trading week! Make sure to post any questions or comments at the box below.

 

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